Financial and Managerial Accounting: E7-19 Medical Molded Products Inc. prepared the following
Financial and Managerial Accounting E7-19 Factory overhead cost variance report Medical Molded Products Inc. prepared the following factory overhead cost budget for the Trim Department for March 2012, during which it expected to use 10,000 hours for production: Variable overhead cost: Indirect factory labor 29,000 Power and light 7,500 Indirect materials 13,000 Total variable cost 49,500 Fixed overhead cost: Supervisory salaries 34,100 Depreciation of plant and equipment 24,800 Insurance and property taxes 22,100 Total fixed cost 81,000 Total factory overhead cost 130,500 Medical Molded Products has available 15,000 hours of monthly productive capacity in the Trim Department under normal business conditions. During March, the Trim Department actually used 11,000 hours for production. The actual fixed costs were as budgeted. The actual variable overhead for March was as follows: Actual variable factory overhead cost: Indirect factory labor 31,100 Power and light 8,100 Indirect materials 15,000 Total variable cost 54,200 Construct a factory overhead cost variance report for the Trim Department for March. Use the minus sign to enter favorable variances as negative numbers.
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